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The Complexity of Business Communication

CoachStation

This story explains competitive advantage in a nutshell. Most importantly, does it help you understand competitive advantage? The reply: “I only need to outrun you, not the bear.” Would you remember this tomorrow? Could you repeat it in a month’s time? Unfortunately, most organisations are closer to the second example.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

Our research has found that embedded sustainability drives financial performance through mediating factors such as innovation, operational efficiency, risk reduction, employee recruitment, engagement and retention, customer and supplier loyalty, competitive advantage, reduced cost of capital, and improved marketing and sales.

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Desperately Seeking Simplicity

Harvard Business Review

Today, only 9% of businesses in the world have achieved even a modest level of sustained, profitable growth over the past decade on average (5.5%, earning cost of capital) and that is declining — even though virtually all the businesses aspire to something like this or more. That is a topic for a future blog.).

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The Basic Principles of Strategy Haven’t Changed in 30 Years

Harvard Business Review

Almost every time I teach the basic concepts of strategy — the five forces framework or the principles of competitive advantage — I get the same question. To get a higher return than the average competitor, you must have an advantage or you must compete in an unusually attractive sector.

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The Three Decisions You Need to Own

Harvard Business Review

While the obvious decisions that CEOs need to get right involve strategy and competitive advantage, too many executives delegate away three critical decisions that they need to own: decisions about goals, resource allocation, and people. The best executives understand which ones they need to focus on and which ones they can delegate.

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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business Review

Established banks have real advantages in serving the SME lending market, which should not be underestimated. Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window.

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Even for Companies, the U.S. Is Split Between Haves and Have-Nots

Harvard Business Review

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. Consider what’s happening among corporations.

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